Buttermilk Powder Market

Buttermilk Powder Market Outlook (2024 to 2034)

Fact.MR's latest study reveals that the global buttermilk powder market size is estimated at US$ 3.02 billion in 2024. Worldwide demand for buttermilk powder is forecasted to increase at a 6.3% CAGR and reach a market size of US$ 5.57 billion by the end of 2034.

Increasing preference for ready-to-eat and convenience products in several food applications is predicted to stimulate demand for buttermilk powder. It is used as one of the most prominent and convenient ingredients in food preparation.

Diversification and expansion within the food sectors, including dairy, processed food, confectionery, and bakery, are predicted to contribute to the rising use of buttermilk powder. In addition, changing consumer preferences for some healthier food choices is estimated to stimulate the adoption of buttermilk powder owing to its perceived health benefits, including probiotic properties and protein content.

Key Market Growth Drivers

• Longer shelf life of buttermilk powder compared to liquid buttermilk is predicted to make it a commonly preferred choice for manufacturers, ensuring product stability and reducing food waste.
• Significant expansion of international export-import activities and international trade allows wider access and distribution of buttermilk powder across geographies.

Innovations taking place in manufacturing processes are projected to enhance the texture, taste, and quality of buttermilk powder, attracting more consumers. Wider application of buttermilk powder in several food products, including sauces, dressings, baked goods, and confectionery items, is predicted to stimulate demand in the coming 10 years. Efficient distribution networks and enhanced supply chain logistics ensure the widespread availability of buttermilk powder to businesses and customers.

• Sales of buttermilk powder in North America are predicted to advance at 5.6% CAGR and reach US$ 1.09 billion by 2034-end.
• Revenue from buttermilk powder sales for industrial applications is estimated at US$ 1.1 billion in 2024.
• The United States is forecasted to account for 66.2% share of the North American market by the end of 2034.

Report Attributes	Details
Buttermilk Powder Market Size (2024E)	US$ 3.02 Billion
Forecasted Market Value (2034F)	US$ 5.57 Billion
Global Market Growth Rate (2024 to 2034)	6.3% CAGR
East Asia Market Share (2034F)	25.2%
Japan Market Value (2034F)	US$ 231.6 Million
Canada Market Value (2024E)	US$ 122.1 Million
Industrial Segment Revenue Share (2034F)	36.6%
Key Companies Profiled	Hoogwegt Group All American Foods Contenental Dairy Facilities, LLC Agropur Fonterra Co-operative Group Limited DFA Ingredients solutions IPS-Ingredis North Cork Creameries Lactalis Ingredients NOW Health Group Dairygold Deutschland Handels GmbH California Dairies, Inc. Westland Milk Products Valio Ltd. Uelzena Group Numidia BV ACE International LLP Bempresa Michigan Milk Producer Association

What’s Contributing to Global Buttermilk Powder Market Growth?

“Rising Demand for Processed Food Products Stimulating Use of Buttermilk Powder”

Growing awareness about healthy ingredients and hectic consumer lifestyles are predicted to lead to increased adoption of nutritious processed food products. In addition, processed food ingredients, including buttermilk powder, are in increased demand owing to the increasing popularity of exotic flavors among a majority of consumers.

Buttermilk powder as a convenient food ingredient is gaining traction because of its advantages, including easy handling, storage, preservation, and ease of cooking. Convenience and changing lifestyles are some of the prominent factors fueling demand for processed food products, which contributes to the growth of the buttermilk powder market.

“Growing Adoption of Buttermilk Powder as Popular Substitute to Skimmed Milk”

Skimmed milk powder contains oxidized cholesterol, which is not good for our health. Raw milk is used in the manufacturing of skimmed milk. The heating procedure results in the production of oxidized cholesterol, which is considered bad for health. However, buttermilk powder is widely adopted as a good source of minerals and vitamins to help maintain strong bones and lower cholesterol levels.

Buttermilk powder is adopted as a very good protein source with low fat levels. Protein in buttermilk powder is identical to skimmed milk powder, but the latter has a slightly higher content of fat. Moreover, buttermilk powder is adopted as a replacement for skimmed milk powder to enhance dairy flavors in food products.

High solubility of buttermilk powder in comparison to skimmed milk powder is also contributing to its increased demand. Further, the specific emulsifier capacity of skimmed milk is predicted to positively impact market expansion opportunities.

Why is Demand Growth for Buttermilk Powder being Adversely Impacted?

“High Volatility in Prices of Dairy Products”

There are chances of constant fluctuations in the cost of dairy products across geographies during the assessment period. This fluctuation can sometimes lead to higher production costs for buttermilk powder, thereby impacting its cost-effectiveness. Monetary aspects are undoubtedly an important aspect for consumers, which negatively impacts the buttermilk powder market trends.

What Initiatives Should Start-ups Take to Enhance Their Profitability?

“Investment in Innovative Technology for Extended Buttermilk Powder Shelf Life”

Start-ups can invest in innovative technology to extend the shelf life of buttermilk powder. In addition, they can also provide toll packaging and custom-dried food ingredient packaging to ensure the protection and longer stability of buttermilk powder.

Country-wise Insights

According to a report published by Fact.MR, a market research and competitive intelligence provider, demand for buttermilk powder in East Asia is predicted to increase at a 7% CAGR and reach US$ 1.4 billion by the end of 2034. This increased demand is attributed to growing awareness about wellness and health. In addition, the growing consumption of ready-to-eat food products is predicted to stimulate the demand for buttermilk powder.

What is Attracting Buttermilk Powder Companies to the United States?

“Rising Adoption of Buttermilk Powder as Dietary Supplement”

Attribute	United States
Market Value (2024E)	US$ 414.7 Million
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 718.9 Million

The United States is forecasted to hold 66.2% share of the North American market by 2034-end. The rising health consciousness in the United States is predicted to positively impact the buttermilk powder demand. There is an increase in the consumption of buttermilk powder as a dietary supplement in the country. In addition, the growing adoption of ready-to-cook products due to hectic lifestyles is also projected to positively impact market growth.

What Makes China a Profitable Market for Buttermilk Powder Suppliers?

“Increasing Consumption of Buttermilk Powder as Convenient Food Ingredient”

Attribute	China
Market Value (2024E)	US$ 492 Million
Growth Rate (2024 to 2034)	7.2% CAGR
Projected Value (2034F)	US$ 989.4 Million

China is forecasted to hold 70.5% of the East Asia buttermilk powder market share by 2034. The presence of several suppliers and manufacturers of buttermilk powder in China is predicted to positively impact market trends.

Growing demand for buttermilk powder is attributed to its health benefits and functionality. In addition, buttermilk powder is easy to preserve and has a longer shelf life, which is projected to cushion its demand. The widespread use of buttermilk powder in bakeries and confectioneries is also estimated to contribute to its demand in the market.

Category-wise Insights

According to Fact.MR’s report, worldwide demand for organic buttermilk powder is predicted to increase due to the growing emphasis on wellness and health by health-conscious consumers. They perceive organic products as a healthier alternative owing to the absence of pesticides, antibiotics, etc.

Which Type of Buttermilk Powder Will Exhibit Increased Demand Globally?

“Better Solubility of Spray-dried Buttermilk Powder Contributing to Increased Demand”

Attribute	Spray Dried
Segment Value (2024E)	US$ 1.56 Billion
Growth Rate (2024 to 2034)	6.1% CAGR
Projected Value (2034F)	US$ 2.81 Billion

Spray-dried buttermilk powder is predicted to hold a 50.5% share of the global market revenue by 2034. Demand for spray-dried buttermilk powder is increasing compared to the atmospheric roller-dried variant owing to the former’s enhanced solubility. Therefore, it becomes comparatively easy to reconstitute spray-dried milk into liquid form while making it more convenient for several food applications.

Spray-drying technology helps in the preservation of texture, flavor, and overall quality of buttermilk. Compared to other drying methods, it contains more original characteristics that are otherwise changed during processing.

Which Distribution Channel is Set to Account for Higher Sales of Buttermilk Powder?

“Rising Use of Business-to-Business Channels for Buttermilk Powder Distribution”

Sales of buttermilk powder through business-to-business distribution channels are predicted to reach a valuation of US$ 1.94 billion by the end of 2034.

Increased adoption of business-to-business channels for delivery of buttermilk powder is attributed to its rising use in several industries, including foodservice, animal feed, and other sectors. It is used prominently in the production of dressings, sauces, baked goods, confectionery, and others. B2B channels are well-suited to supply buttermilk powder to manufacturers from these industries.

Competition Landscape

Leading market players are expanding their footprints across regions to gain a competitive edge. They focus on ensuring product quality, effective supply chain system management, new developments, and collaborations. They are focusing on providing essential ingredients of buttermilk powder in several industries, including animal feed, food & beverages, retail, etc.

Key players in the buttermilk powder market are Hoogwegt Group, All American Foods, Contenental Dairy Facilities, LLC, Agropur, Fonterra Co-operative Group Limited, DFA Ingredients Solutions, IPS-Ingredis, North Cork Creameries, Lactalis Ingredients, NOW Health Group, Dairygold Deutschland Handels GmbH, California Dairies, Inc., Westland Milk Products, Valio Ltd., Uelzena Group, Numidia BV, ACE International LLP, Bempresa, and Michigan Milk Producer Association.

Segmentation of Buttermilk Powder Market Research

• By Type :

  • Atmospheric Roller Dried
  • Spray Dried

• By Nature :

  • Organic
  • Conventional

• By End User :

  • Retail
  • Foodservice
  • Industrial
  • Animal Feed

• By Distribution Channel :

  • Business to Business
  • Business to Consumer

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania